US lays out demands for Canada on dairy, streaming, liquor

With US–Canada trade talks still stalled, Washington has laid out its clearest demands yet for maintaining free trade between the two countries, as a review of the USMCA pact gets under way.

US Trade Representative Jamieson Greer outlined the concerns before Congress on December 17, saying the agreement has been “successful to a certain degree” but requires changes to continue. While both Canada and Mexico want the USMCA extended, President Donald Trump has repeatedly suggested the US could withdraw, BBC writes. 

At the top of the US list is greater access to Canada’s tightly controlled dairy market. Trump has raised the issue several times, including in a letter earlier this year threatening a 35% blanket tariff on Canadian goods. In it, he accused Canada of charging “extraordinary tariffs to our dairy farmers – up to 400 per cent”.

Canada’s dairy sector operates under a supply-management system that limits production and imports to protect domestic farmers, often resulting in higher prices for consumers. Although some US dairy products can enter Canada tariff-free within set quotas, those limits have never been reached.

Canada nonetheless imported $1.1 billion worth of US dairy in 2024. Greer said the current framework unfairly restricts access and must be expanded, and also accused Canada of dumping “certain dairy products”, such as nonfat milk solids, at low prices on global markets.

Prime Minister Mark Carney said in August that dairy supply management is not “on the table”, though Canada conceded additional access during the last USMCA review under Trump’s first term.

Another flashpoint is Canada’s Online Streaming Act, passed in 2023, which requires companies like Netflix and Spotify to fund and promote Canadian content.

Greer told lawmakers the law “discriminates against US tech and media firms” and should be revised. He also cited the Online News Act, which forces platforms such as Meta and Google to compensate news outlets. Meta has blocked news for Canadian users in response.

The US is also pressing Canada to restore American liquor to provincial store shelves. Most provinces removed US alcohol earlier this year in retaliation for Trump’s tariffs on Canadian goods. Ontario Premier Doug Ford has said the boycott will continue until a tariff deal or renegotiated USMCA is reached. Greer said Washington wants US liquor back on shelves if the agreement is extended.

By Sabina Mammadli